Publicação
Sleeping Quotas, Pre-Emptive Quota Bidding and Monopoly Power
| Resumo: | We rationalize the puzzling existence of binding quotas that are not fully utilized. Our model has its roots in Bhagwati (1965) on tariffs/quotas equivalence and is related to the I0 literature on pre-emption. We study the conditions that lead a monopolist, facing a quota-restricted market, to buy the quota licenses itself and the condi-tions under which they may remain unused. The divisibility of the quota is crucial for the monopolist to pre-emptively buy the quota. Further-more, we study the implications of "use-it-or-lose-it" clauses commonly imposed on auctioned quotas. |
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| Autores principais: | Cunha, Luís Campos e |
| Outros Autores: | Santos, Vasco |
| Assunto: | Quota equivalence Endogenous-valuations auctions Pre-emption |
| Ano: | 1995 |
| País: | Portugal |
| Tipo de documento: | working paper |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | We rationalize the puzzling existence of binding quotas that are not fully utilized. Our model has its roots in Bhagwati (1965) on tariffs/quotas equivalence and is related to the I0 literature on pre-emption. We study the conditions that lead a monopolist, facing a quota-restricted market, to buy the quota licenses itself and the condi-tions under which they may remain unused. The divisibility of the quota is crucial for the monopolist to pre-emptively buy the quota. Further-more, we study the implications of "use-it-or-lose-it" clauses commonly imposed on auctioned quotas. |
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